Concerns mount over rising petrol costs as Malaysia cuts subsidised RON95 quota, hitting delivery drivers and SMEs with up to 50% higher fuel bills.
PETALING JAYA: Concerns are mounting over the potential cost impact on working Malaysians and small businesses following the government’s decision to amend the subsidised RON95 quota from 300 litres to 200 litres from April 1.
Bumiputera Petrol Station Operators Association of Malaysia president Datuk Abd Aziz Sapian said such a drastic action should not be based on the average monthly petrol use by Malaysians.
He acknowledged Prime Minister Datuk Seri Anwar Ibrahim’s justification for the move, which is based on the fact that nearly 90% of users consume below the 200-litre threshold.
He said averages, however, do not reflect the realities faced by high-usage groups who rely on fuel as a daily economic input rather than a discretionary expense.
Abd Aziz said the move affects active users, including delivery drivers, sales personnel and small traders.
“Public policy cannot be assessed purely on averages.
There will always be segments that consume more because their livelihoods depend on it.
”Their concerns are amplified by the sharp rise in market fuel prices in recent weeks.
According to the Finance Ministry’s weekly retail price announcements, unsubsidised RON95 prices climbed from RM2.59 per litre for the week of Feb 26-March 4 to RM3.87 per litre for March 26-April 1, a 49.4% increase in a month.
Diesel prices in Peninsular Malaysia rose even more steeply from RM3.04 to RM5.52 per litre, marking an 81.6% jump over the same period.
“Users who previously exhausted their 300-litre allocation by the third week of the month may now hit the 200-litre cap as early as the second week, significantly increasing their monthly fuel expenditure.
”Abd Aziz said fuel costs for this group could rise by between 30% and 50%, depending on travel patterns and job requirements.
He said the ripple effects are expected to extend to SMEs, many of which are still operating on thin margins following several challenging economic years.
He added that higher fuel costs translate directly to increased expenses for logistics, site visits, field services and daily operations.
“These costs do not disappear.
They are either passed on to consumers through higher prices or absorbed through reduced activity, which may affect income and employment.
”He said petrol station operators are experiencing structural pressures as regulated margins prevent them from gaining proportional benefits when retail fuel prices increase.
